Annual Report 2011

Specifically, to secure and enhance stable earnings over the long term, we focus our investment on yen-denominated bonds and loans to companies with sound financial positions. In parallel, we are reinforcing our investment in stocks, foreign-currency-denominated bonds and other equities, and are adjusting our portfolio to improve the soundness of our assets and raise investment profitability.Current Situation of Asset ManagementTo secure and enhance stable earnings over the long term, we focused our investment mainly on Japanese Government Bonds and other high grade, yen-denominated assets. Regarding investment in stocks, foreign currency- denominated bonds and other equities, we took steps to improve earnings through the acquisition and sale of these equities based on proprietary research and analysis of potential growth of the companies and price valuation. (See the graphs)International InvestmentsIn its overseas investments, Zenkyoren pays extremely close attention to exchange risks, country risks and other risks, as we invest primarily in foreign currency-denominated bonds and foreign equities and in yen-denominated loans and bonds for foreign governments. Our subsidiaries in New York (ZAMA) and London (ZEL) undertake support activities related to securities investments, overseas investments, and so on.REINSURANCE Reinsurance ActivitiesAs part of natural disaster risk management, risks deriving from Building Endowment policies, Cooperative-Owned Building Fire policies, and retrocession risks from the National Agricultural Insurance Association are ceded to multiple reinsurers.The Reinsurance Panel in Zenkyoren is stringently selected considering the following elements.• Past performance of each reinsurance company• Credit ratings by third-party rating agencies• Financial strengthUtilizing reinsurance diversifies the risk portfolio, contributing to firm and stable business operations.Zenkyoren Asset Management of America, lnc. (ZAMA), New YorkZenkyoren Europe Limited (ZEL), London  ANNUAL REPORT 2011 09